Due Diligence When Buying Land in Kenya
Land purchase is a significant investment, and it is crucial to conduct thorough legal due diligence to ensure a smooth and secure transaction. This is particularly important in Kenya, where land-related issues can be complex and fraught with challenges.
The following key steps and considerations will help to protect your interests:
Engage a Qualified Advocate
To begin the process, it is essential to engage the services of a qualified advocate who specializes in real estate and property law in Kenya. A qualified advocate will navigate the legal intricacies and safeguard your interests throughout the transaction.
Verify Land Ownership and Title
The first step in legal due diligence is to verify the ownership of the land both physically at the Lands Registry and through the Ardhisasa online portal. Request the seller to provide the title deed or certificate of lease, which will be registered with the Ministry of Lands and Physical Planning, and verify its authenticity . Ensure that the title deed or certificate of lease corresponds to the land parcel in question, and cross-check it with the cadastral maps available at the Ministry of Lands.
Search for Encumbrances and Restrictions
Perform a thorough search for any encumbrances or restrictions on the land both physically at the Lands Registry and through the Ardhisasa online portal. These could include mortgages, liens, caveats, leases, or any other third-party interests that may affect the land’s transferability. Additionally, verify if there are any existing disputes or litigation involving the land.
You may also like: Companies and Company Formation in Kenya
Conduct a Survey and Physical Inspection
Engage a licensed surveyor to conduct a survey of the land to verify its boundaries, size, and any physical encroachments. This step is crucial to ensure that the land you are purchasing aligns with the descriptions provided in the title deed. Undertake a physical inspection of the land to assess its suitability for your intended use and confirm if any developments or structures on the property comply with regulations.
Confirm Compliance with Zoning and Land Use Regulations
Verify that the land is appropriately zoned for your intended use. Different areas in Kenya have specific zoning regulations that govern land use, and it is crucial to ensure that your proposed activities align with these regulations. Check with the relevant local authorities to confirm the permitted land use and any future development plans that may impact the area.
Review Environmental and Planning Approvals
If your intended use involves development or construction, review any environmental and planning approvals required for the project. Check if a license from National Environment Management Authority (NEMA) is necessary, and confirm that the seller has obtained all the necessary permits and clearances from the relevant authorities.
You may also like:Â Affidavit of Marriage in Kenya
Investigate Community and Customary Rights
In some parts of Kenya, land may be subject to community or customary ownership rights. Investigate if there are any such rights that could affect your ownership and use of the land. Engage with the local community and relevant authorities to understand the local land tenure system and any obligations or restrictions associated with it.
Draw/Review the Sale Agreement
Carefully draw/review the sale agreement. Ensure that the terms and conditions are fair and reasonable.
Summary of The Process of Transferring Land Title Deed in Kenya
1.Conduct land due diligence as highlighted above
2. Draw a land sale agreement
3. Obtain a consent to transfer the land (from Land Control Board or National Land Commission)
4. Get a valuation report
5. Pay stamp duty
6. Pay any outstanding land rates and obtain a clearance certificate
7. Lodge the documents for registration of the title transfer
Documents Required for Transfer of Land
1. Original title deed
2. The land search certificate
3. Clearance certificate from the Land Control Board
4. The transfer forms signed by both the seller and the buyer
5. The sale agreement
6. The valuation report
7. The stamp duty declaration and pay-in-slip
8. Land rent clearance certificate
9. Land rates clearance certificate
10. Copies of seller and the buyer national ID
11. Copies of seller and the buyer KRA pin certificates
12. Three passport photos of the seller and the buyer
You may also like: The Law barring couples from divorce within 3 years declared unconstitutional
By following this guide, you can mitigate risks and make an informed decision, ensuring a smooth and secure transaction. If you need assistance or have any inquiries regarding Land Purchase in Kenya, we are here to help. Please feel free to reach out to us using the following contact information:
Telephone: 0202 148 300
Cell Phone: 0111 888 681
Email: info@dmklaws.co.ke or dmklaws@gmail.com
We look forward to assisting you in your land acquisition journey.
